What are the Different Advantages of Each?
Leasing a New Car
As you will come to find, leasing is
in many ways like a rental program with extra benefits! It is the desirable
choice for those who wish to commit to a model only for a short time period.
The main stipulation is that lessees must maintain the condition of the car in
question and keep its mileage count under control.
- A lease is a more affordable option
because in most cases there are low or no down payments expected up front.
Monthly rates are typically lower as well, helping drivers save more money as a
whole.
- Generally, you are not obligated to
stick to the same model for more than three years. In this way, leasing is like
a trial period wherein drivers can explore different types of sedans, vans,
trucks, and SUVs.
- Leased vehicles are almost always
included with comprehensive manufacturer warranties. That means regular auto
maintenance at the dealership is often inexpensive.
- If you conclude at the end of your
lease agreement that you wish to keep the car that is currently in your
possession, then you can opt to pay off the remainder of its cost to claim
ownership too.
Buying a New
Car
Unlike a lease whereby the model is
owned by the dealer, choosing to buy it gives you more leeway. That is to say,
buying is a better option for those who plan to own a car for many years and
driving it for many miles from Boaz to Chattanooga and beyond! The main
difference is that payments tend to be higher.
- A purchase usually requires an auto
loan, which means the monthly payments are subject to higher rates. However, at
the end of a loan term, the vehicle is yours and yours alone to keep.
- Paying off an auto loan is also a
fantastic way to build your credit. Not to mention, you are building equity in
doing so because you retain sole ownership after the purchase is complete.
- Along with ownership, you will have
the freedom to modify and accessorize your car as you please. The result? You
can mold your driving experience to your liking.
- If you prefer to make a different
purchase, you have the freedom to sell or trade your model at any time too
because you are not restricted to a lease term.
